We use cookies to improve site performance and enhance your user experience. If you'd like to disable
cookies on this device, please see our
cookie management page. If you close this message or continue to use this site, you consent
to our use of cookies on this devise in accordance with our
cookie policy, unless you disable
them.

Q: Who is a Sipp suitable for?

Sipps are about choice and control, not just while saving but also when taking benefits.

Mary Stewart, director of Hornbuckle Mitchell, said they appeal to any pension investor with the confidence to manage their own affairs while working or in retirement, either alone or with the help of their own professional adviser.

She added they are the only way to invest pension money in non-standard and esoteric assets or to borrow within the pension scheme.

Ms Stewart said: “Today’s range of Sipps and highly competitive charging make them an option for a wide range of investors who are serious about building up a pension pot, including those building up provision alongside a defined benefit scheme.

“These include both wealthy and many of the ‘mass affluents’ who make up most advisers’ key clientele.”

For a low cost Sipp, Billy Mackay, marketing director of AJ Bell, said the fund value involved can be smaller but will often be £100,000 plus.

The costs for these products will often be comparable with the costs for personal pensions and funds platforms so it is logical that it is viable to recommend them for clients with similar fund sizes, he added.